How To Roll Over Your Account Into WiseBanyan

Update: The following post is outdated as we’ve simplified our rollover process! IRAs have also moved into Tax Protection, one of our premium packages.

If you’re thinking about rolling over your account into WiseBanyan, congratulations in advance!

Because WiseBanyan doesn’t charge any fees, when you roll over your 401(k) from another financial firm to yours truly, you’re potentially saving yourself hundreds of thousands of dollars. Not sure where to start?

Here’s how to easily roll your account over into WiseBanyan:

Step 1: Give Us A Heads Up

If you’re currently a WiseBanyan client, skip to step two.

If you’re not a WiseBanyan client, you’ll need to set up an account before you can go forward. It’s super easy. Sign up, create a Retirement milestone, and choose the type of account that corresponds to the account you’re rolling over. So if you’re rolling over a 401(k), roll it into whichever IRA is appropriate for your income bracket and employment situation. You can view the different types of IRAs here, and here’s a handy chart that tells you whether your current retirement plan can be converted into a Roth or Traditional IRA.

WiseBanyan offers Roth, Traditional, and SEP-IRAs.

Next, let us know you’re making the switch. Send us an email with a copy of a recent statement with your current provider. We’ll then send you a follow up email with paperwork and your account number.

Step 2: Break Up With Your Provider

You had a good run, but it’s time. We recommend you call your provider and have them send the funds directly to WiseBanyan as opposed to transferring your funds to your bank account, then to WiseBanyan. If you transfer your funds to WiseBanyan after you’ve already transferred the money to your bank account, the rollover is considered indirect. The IRS only lets you do one indirect rollover per year.

If you need to do an indirect rollover or you’ve already moved the money from your 401(k)/403(b) into your bank account, please note this in the initial email to us.

However, if you roll over the money in your 401(k)/403(b) to WiseBanyan directly, it’s considered a direct rollover. There’s no limit on the number of direct rollovers each year. To get started with your direct rollover, give your provider a call.

When you call your provider, It shouldn’t come as a surprise that they won’t want to let you go. In fact, they’ll use anything from scare tactics to fruit baskets to get you to stay. Well, maybe not the latter. But trust us, they’ll be convincing.

Here’s how to stay strong when your provider is begging you to stay.

They’ll say: “Hold up, this is an early distribution. You’re going to pay taxes on that?”

To which you’ll beautifully respond: “No I won’t, because I’m depositing my money in 60 days.”

Simply masterful.

They’ll say: “If you do an indirect rollover or an early distribution we’re going to withhold some of your money.”

To which you’ll beautifully respond: “Nope. This is a direct rollover and I’m depositing my money into an IRA in 60 days so no withholding necessary.”

QED.

They’ll say: “Seriously though, you may have to pay taxes.”

To which you’ll beautifully respond: “Negative, since I’m rolling over the money within 60 days, and I haven’t done an indirect rollover this calendar year.”

It’s like you’re becoming an expert.

Now, if you’re rolling over a 401(k) into an IRA, your provider might go extra hard convincing you to opt for their IRA provider.

They’ll say: “Why don’t you switch to our awesome IRA provider?”

To which you’ll facetiously ask: Is your IRA provider completely devoid of fees, minimums, or kickbacks?

We didn’t think so!

Just a note: the devil is always in the details. Some providers might look cheap, but their fees could be hiding in the fine print. Try to find the “fine print hidden fees” with WiseBanyan. Spoiler alert: there are none.

So, you’ve called us, you’ve called your provider. Just how do we get this show on the road?

Step 3: Mail That Money

Your account provider will want to know your account number with WiseBanyan. That number will be provided in the follow up email WiseBanyan sends you (see Step 1). Your (former) account provider will then send a check so we can fund your new account. The check will be for the amount of money in your former account. You probably already realized this, but we never charge you to roll over an account.

IMPORTANT INFORMATION ALERT

Make sure your former provider makes the check payable to Apex Clearing Corp. FBO [YOUR NAME]. The memo (written on the bottom left space on the check) should be your account number. Your account number will be provided in the follow up email WiseBanyan sends you (see Step 1). Tell your provider to mail the check to:

Step 4: Rejoice!

Now all you have to do is sit back and relax. Within a matter of days, your rollover should be processed* and you’ll be good. Since your funds will now be attributed to the milestone(s) of your choice, remember to review your auto-deposit plan(s) to stay on track.

While we’re always confident in the information we deliver to you, this resource is for informational use only and its posts shouldn’t be considered investment advice. And while WiseBanyan is always working to minimize tax consequences, we’re not a tax advisor, so please remember to consult one before making any tax related financial decisions. Finally, we may use numbers from time to time, but these will only be used for illustrative purposes.

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